Industries cry foul as government announces a 15-day total blackout for the largest power users

Ecuador’s major industries were furious Thursday morning after the government announced it would suspend electric service to major users for 15 days beginning December 15. “Once again, the government has made a late-night decision affecting a critical sector of the economy and, as before, the industries affected were not consulted before the decision was made,” said Francisco Jarrín, president of the Guayaquil Chamber of Industries.

The Continental Tire factory in Cuenca is one the industries that will suffer the 15-day power suspension beginning December 15.

“What this proves,” Jarrín continued, “is the country still suffers from a large energy deficit and the promise that blackouts would end December 20 cannot be kept for all customers,” he said.

According to a statement released Thursday by the Energy Ministry, electric service to high energy consuming industries will be suspended December 15 to ensure that blackouts can end December 20 for most domestic and small business customers.

According to Energy Minister Inez Manzano, the industries affected by the decision consume 26% of the country’s electricity. Among them are the country’s two largest mining operations, Lundin Gold and Ecuacorriente.

Vice President of the Quito Chamber of Industries Freddy Ramos accused Nobo of of “lying once again” to the public. “He said last week that blackouts would end December 20 and now he says this does not apply to a major sector of the country. He made another commitment he cannot keep and, to cover his mistake, he acts as if industries which employee tens-of-thousands of people are not part of Ecuador.”

In comments during a Radio Quito interview, Ramos said the industrial blackout is politically motivated. “Obviously, this is all about the election. Noboa wants to keep the lights on until the election no matter what the cost to the public.”

Ramos speculated that Noboa will also activate the turbines at the Mazar hydroelectric complex even at reservoir levels are below safe operational standards. “He will do whatever is necessary to placate the public for the purpose of being reelected,” Ramos said.

Jarrín said industry owners in Guayaquil have not yet determined how the power suspension will affect employment. “The entire sector is already in crisis and this will only aggravate the situation,” he said. “One thing is certain and that is that thousands of employees will face economic hardship as we enter the holiday season.”